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HomeMy WebLinkAbout11/07/2017 09 2018 CDBG and HOME Annual Action Plan - First Public MeetingBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 9. For Meeting of: November 7, 2017 ITEM TITLE: Final public meeting to consider citizen comments; and resolution adopting the proposed 2018 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Fund Programs SUBMITTED BY: Joan Davenport, AICP, Community Development Director Archie Matthews, ONDS Manager (509) 576-6761 SUMMARY EXPLANATION: Every year the City of Yakima is required by the Federal Housing and Urban Development Department (HUD) to provide an Annual Action Plan that outlines the City of Yakima's budget plans for using Community Development Block Grant (CDBG) entitlement funds and HOME I nvestment dollars to meet the needs of its low to moderate income citizens with "eligible activities". The CDBG program has three primary objectives; to benefit low and moderate income persons, to assist with problems relating to slum and blight, and to assist with urgent health and welfare needs. The program can thus provide assistance in a broad range of activities and services, but at least 70% of all funds must be spent on assisting people with issues related to low income. The HOME Program can only assist low/moderate income persons with issues relating to housing; which can range from new construction of single-family to rental housing and down payment assistance for first time homebuyers. I nvestment of the federal funds received through the CDBG and HOME programs is guided by the annual action plan. Following considerable citizen input from many sources, under the guidance of Yakima City Council members, and as recommended by the HUD regulations, the plan is a proposed budget for FY2018 programs. The 2018 Annual Action Plan has been advertised and available for written public comment from October 2, 2017 through October 31, 2017 and any written comments received during the 30 day comment period will be included in the final plan as submitted to HUD. This is the final opportunity for public comments on the proposed 2018 Annual Action Plan DRAFT, which is available at the City Clerk's Office or online at: https://www.yakimawa.gov/services/neighborhood-development-services/files/AAP-2018.pdf Written comments were received from RCDR and are included for consideration. ITEM BUDGETED: Yes OAF STRATEGIC PRIORITY: Neighborhood and Community Building APPROVED FOR SUBMITTAL: ~City Manager ct*�� STAFF RECOMMENDATION: Conduct final public meeting and adopt resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D Resolution 2018 Annual Action Plan CDBG, HOME 10/25/2017 Resolution D Draft 2018 Annual Action Plan for Yakima 10/25/2017 Backup Material D Summary of 2018 Proposed CDBG, HOME programs 10125/2017 Backup Material D History of City Entitlements 10/25/2017 Backup Material D Letters informing MCDR and OIC at possible 2018 10/25/2017 Backup Material reductions D Written Comments from ROBB, on Action Plan 10/25/2017 Backup Material D Letters of Support from RCDR 10/25/2017 Backup Material RESOLUTION NO. R -2017- A RESOLUTION adopting the proposed 2018 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Fund Programs as mandated by the Department of Housing and Urban Development (HUD) WHEREAS, the City of Yakima completed the Draft Annual Action Plan for 2018 as required annually by HUD as a requirement for receiving federal funds; and WHEREAS, in order to access the federal CDBG and HOME funds for year 2018, the city is required to submit an Annual Action Plan; and WHEREAS, the Office of Neighborhood Development Services fulfilled the requirements for two public input meetings held on October 17, 2017 and November 7, 2017 and provided an open 30 day written comment period from October 2, 2017 through October 31, 2017; and WHEREAS, there is uncertainty in the federal funding amounts for the CDBG and HOME funds for the year 2018, and therefore, it is contemplated that in the event funding is not as expected, the proposed 2018 Annual Action Plan will be amended by staff; and WHEREAS, the City Council of the City of Yakima finds it is in the best interest of the City and its residents to adopt the proposed 2018 Annual Action Plan for CDBG and HOME Fund Programs, with the understanding that the funding amounts may change due to federal government decisions, and such changes would require City staff to amend the action plan to conform with funding changes; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: That the City Council of the City of Yakima adopts the 2018 Annual Action Plan and the City Manager of the City of Yakima is hereby authorized to direct staff to submit the Annual Action Plan to HUD as required. In the event the federal government provides an amount of funding different than that in the 2018 Annual Action Plan, the City Council directs City staff to make appropriate amendments to the plan to conform with the funding received. ADOPTED BY THE CITY COUNCIL this 7th day of November, 2017. ATTEST: Sonya Claar Tee, City Clerk Kathy Coffey, Mayor 4 City of Yakima Office of Neighborhood Development Services Community Development Block Grant HOME Investment Partnership: DRAFT 2018 Annual Action Plan Executive Summary AP -05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction As the annual recipient of federal Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds, the City of Yakima is required to engage in a careful planning process. This process involves a long-term five-year strategy, which is detailed in a document called the Consolidated Plan, and a subset of this document known as the Annual Action Plan. Each Action plan specifies the things the City will do during the coming year to implement those steps it feels will lead to the accomplishment of the goals set forth in the Consolidated Plan. A key component of serving the needs of local residents is to meet with them, and listen to them as they express their thoughts. ONDS follows a Yakima City Council adopted "Citizen Participation Plan" as approved by HUD. This plan dictates how the Office of Neighborhood Development Services conducts citizen participation input meetings for both the Consolidated Plan and the Annual Action Plan. Information is collected from City residents and others in a variety of ways. There are regular surveys conducted of local citizens to ask about their needs and challenges. Meetings are held to provide the opportunity for people to speak. And as required by HUD City staff meet with other providers of services for low-income persons to hear about the things they feel are important. By the time the 2018 Action Plan is completed, City staff will have met with local residents on at least two occasions to share information on the possible activities and hear their ideas as is outlined in the HUD mandated "Citizen Participation Plan" as well as held a "Thirty Day Written Comment Period" on the proposed 2018 Annual Action Plan draft. This document is the 2018 Annual Action Plan for the City of Yakima's 2015-2019 Consolidated Plan. The format and content of the document is largely dictated by the US Department of Housing and Urban Development (HUD) regulations. These regulations provide a framework that helps ensure that each dollar invested meets local priorities and complies with Federal law. Congress implemented the CDBG program in order to provide assistance to communities such as Yakima as they work to provide various forms of assistance to low and moderate -income individuals and families. According to law, the CDBG program has three primary objectives; to benefit low and moderate income persons, to assist with problems relating to slum and blight, and to assist with urgent health and welfare needs. The program can thus provide assistance in a broad range of activities and services; but at least 70% of all funds must be spent on assisting people with issues related to low income. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) The HOME program is of more recent origin. It can only assist low/moderate income persons with issues relating to housing. These services can range from new construction of single family or rental housing and down payment assistance to assistance with rents. While lacking the flexibility of the Block Grant program, the HOME program has provided valuable services to hundreds of families here in Yakima. By combining both programs under on strategy the City of Yakima has provided a broad-spectrum approach to helping the many local residents these programs serve. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. This information is contained in the "AP -38 Project Summary contained within this 2018 Annual Action Plan. 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. The 2018 Annual Action Plan will be the fourth year of the 2015-2019 Consolidated Plan. The Annual Action Plans will report progress on addressing priority housing and non -housing community development needs each year from 2015-2019 as Yakima ONDS has annually reported progress for previous 2010-2014 Consolidated Plan. A detailed breakdown report of prior year uses and performances has also been provided in the yearly Consolidated Annual Performance & Evaluation Report (CAPER) which is available at the City of Yakima's Office of Neighborhood Development Office or online at Yakima's webpage (www.ci.yakimawa.gov) 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. To be determined at a later date. 5. Summary of public comments Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. To be determined at a later date. 6. Summary of comments or views not accepted and the reasons for not accepting them To be determined at a later date. 7. Summary Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) PR -05 Lead & Responsible Agencies — 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency CDBG Administrator YAKIMA Office of Neighborhood Development Services HOME Administrator YAKIMA Office of Neighborhood Development Services Table 1— Responsible Agencies Narrative (optional) The City of Yakima's Office of Neighborhood Development Services (ONDS) is the lead agency for preparing Yakima's Consolidated Plan and Annual Action Plans, and has been designated to be responsible for the planning, development, and implementation of its CDBG and HOME programs by the Yakima City Council. Consolidated Plan Public Contact Information Any questions or concerns about this Consolidated Plan should be directed to: Archie M. Matthews The Office of Neighborhood Development Services 112 S. 8th Street Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 4 Yakima, WA. 98902 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) IE AP -10 Consultation — 91.100, 91.200(b), 91.215(1) 1. Introduction Consultation for the Consolidated Plan includes the use of consultants generating statistical information needed to establish needs, gaps and barriers. ONDS consults with public and private agencies and citizens, including a Housing Advisory Committee composed of the Yakima Housing Authority, Yakima Valley Partners Habitat for Humanity, Office of Industrilization Center (OIC), as well as Yakima County, this is also known as the Community Development Advisory Board providing review and feedback. Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) ONDS consults with public and private agencies that provide assisted housing, health services, and social and fair housing services -especially those focusing on services to children, the elderly, persons with disabilities, persons with HIV/AIDS and their families, and homeless persons through the Homeless Network of Yakima County staffed by the Yakima County Department of Human Services. ONDS also consults with Washington State Department of Commerce (CTED) and the Yakima Housing Authority (YHA) to assure that the Yakima Consolidated Plan is inclusive and addresses statutory purposes. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Yakima Valley Council of Governments (YVCOG) is the coordinator of the Yakima County Homeless Planning Policy Council Advisory Committee . The Yakima Valley Council of Governments is composed of a broad group of Yakima County public, non-profit, and private human services agencies including many of the groups listed above. YVCOG conducts regular meetings and agendas, updated the Yakima County Continuum of Care Plan, and organized the annual Point -In Time Homeless Persons Count. The City of Yakima continues to coordinate and assist YVCOG with it's efforts to assist persons at risk of homelessness and chronically homeless individuals and family. The City of Yakima works with YVCOG to strategize, plan and assist with Emergency Winter Shelters for the Homeless on a year by year basis, in order to ensure safe, decent, emergency winter shelters that Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) m are both suitable for the homeless but also suitable for the residents and businesses within those neighborhoods. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Yakima has consulted with Yakima Valley Council of Governments (YVCOG) and other Continuum of Care providers through joint affordable housing committee meetings, through email as well as reviewing individual service provider websites. Yakima Valley Council of Governments (YVCOG) hold scheduled meetings as well as request input from agencies as well as citizens on a regular basis. The City of Yakima works in partnership with YVCOG throughout the Strategic Planning process for both Yakima County and the City of Yakima to develop program performance standards and evaluate and adjust outcomes and develop funding, policies and procedures for a wide variety of programs and fundings, including the administration of the HMIS. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction's consultations with housing, social service agencies and other entities Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) Table 2 —Agencies, groups, organizations who participated 1 Agency/Group/Organization Catholic Charities Housing Services Agency/Group/Organization Type Housing Services - Housing Services -Children Services -Elderly Persons Services -Persons with Disabilities Service -Fair Housing What section of the Plan was addressed by Housing Need Assessment Consultation? Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non -Homeless Special Needs Market Analysis Anti -poverty Strategy Briefly describe how the Agency/Group/Organization ONDS conducted meetings of the Community Development Advisory Board was consulted. What are the anticipated outcomes of providing review and feedback of which Catholic Charities Housing Services (CCHS) the consultation or areas for improved coordination? was an interegal part of. As in the past CCHS has assisted ONDS with developing housing market strategies as well as developing affordable housing projects within the City of Yakima for First Time Homebuyers, as well as affordable housing opportunities for low to moderate income Elderly and disabled. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 2 Agency/Group/Organization OIC OF WASHINGTON Agency/Group/Organization Type Housing Services - Housing Services -Children Services -Elderly Persons Services -Education Service -Fair Housing What section of the Plan was addressed by Housing Need Assessment Consultation? Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Market Analysis Economic Development Anti -poverty Strategy Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization As a member of the Community Development Advisory Board a member of OIC was consulted. What are the anticipated outcomes of attended committee meetings and provided review and feedback of Housing the consultation or areas for improved coordination? needs, affordable housing, homeless issues, lead based paint strategy, as well as Market Analysis research and Economic Development Trends. 3 Agency/Group/Organization YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY Agency/Group/Organization Type Housing Services - Housing Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 10 What section of the Plan was addressed by Housing Need Assessment Consultation? Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non -Homeless Special Needs Market Analysis Economic Development Anti -poverty Strategy Briefly describe how the Agency/Group/Organization Yakima Valley Habitat for Humanity as a member of the Community Development was consulted. What are the anticipated outcomes of Advisory Board attends committee meetings and provides review and feedback for the consultation or areas for improved coordination? a wide variety of Affordable Housing issues, Homeless needs and strategy as well as Anti -poverty Strategy. 4 Agency/Group/Organization YAKIMA COUNTY Agency/Group/Organization Type Housing Services - Housing Services -Children Services -Elderly Persons Services -Persons with Disabilities Services -Persons with HIV/AIDS Services -Victims of Domestic Violence Services -homeless Services -Employment Service -Fair Housing Services - Victims Other government - County Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 10 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 11 What section of the Plan was addressed by Homeless Needs - Chronically homeless Consultation? Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non -Homeless Special Needs Market Analysis Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization Meetings with the Yakima County in consultation about affordable housing and was consulted. What are the anticipated outcomes of homelessness issues within the City of Yakima. Continued coordination in the consultation or areas for improved coordination? developing and maintaining affordable housing as well as continued cooperation in dealing with the Yakima Valley Council of Governments. 5 Agency/Group/Organization Yakima Housing Authority Agency/Group/Organization Type Housing PHA Services - Housing Publicly Funded Institution/System of Care What section of the Plan was addressed by Housing Need Assessment Consultation? Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Market Analysis Anti -poverty Strategy Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 11 Briefly describe how the Agency/Group/Organization The Director Lowel Krueger is a member of the Community Development Advisory was consulted. What are the anticipated outcomes of Board and attended meetings as well as consulted via telephone and email. The the consultation or areas for improved coordination? City of Yakima continues to work closely with the Yakima Housing Authority to develop and maintain affordable housing. Identify any Agency Types not consulted and provide rationale for not consulting No specific Agency was intentionally excluded from the consultation process as a 30 day written comment period will advertise and open to any citizen or agency to give additional written comment, plus two advertised Public Hearings to give ample opportunity for input from individuals, groups, departments and/or agencies. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Yakima County The City of Yakima works hand in hand with YVCOG in assisting the local community with a Continuum of Care Council of variety of programs and goals, such as affordable housing, Yakima County Economic Government Development and Assisting the Homeless The Urban Area Comprehensive Plan (UACP) was developed in accordance with the Growth Management Act (GMA) to address growth issues in the City of Yakima and adjacent Urban Yakima Urban Area Growth Area. It represents the community's policy plan for growth over the next 20 years. It will The City of Yakima Comprehensive Plan assist the management of the City by providing policies to guide decision-making for growth, Planning Dept. 2025 development and public services. Cities are required to update their plans every ten years. The original Yakima GMA Plan was adopted in 1997 and Planned through the year 2015 and has been updated and will carry the community forward through 2025 Table 3 — Other local / regional / federal planning efforts Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 12 Narrative (optional) Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 13 AP -12 Participation — 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal -setting To be determined Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) Table 4 — Citizen Participation Outreach Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 14 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 15 Expected Resources AP -15 Expected Resources — 91.220(c)(1,2) Introduction After ten years of slow steady entitlement reduction from 2007 when the CDBG budget was $1,210,374 and in 2017 was $864,848 with 2007 HOME Investment dollars at $632,684 and in 2017 at the reduced amount of $372,030, we are expecting the 2018 program year to possibly be reduced even more. These reductions are at the federal funding level and the City of Yakima is continually challenged to continue programs with reduced funds in order to continue to serve it's low to moderate income citizens to the best of it's ability. Furthermore, any decision to change CDBG funding greater than 10% increase or decrease in any program funding line after the public comment period received by the City of Yakima ONDS will trigger an amendment as per the adopted citizen participation plan. Although any increase or decrease in funding directly attributed to the Federal Allocation will be added or subtracted to the largest funded program as currently funded through those federal entitlement allocations. (CDBG would be either added or subtracted from the Single Family Rehabilitation program and HOME funds would be added or subtracted from the New Construction program line. Any addition or subtraction to or from either of these program lines equaling more than 10% would trigger a substantial amendment to the Annual Action plan per the currently adopted Citizen Participation Plan.) Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Narrative Description Annual Program Prior Year Total: Allocation: Income: $ Resources: $ Available $ $ Remainder of ConPlan Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 16 Program Source of Uses of Funds Expected Amount Available Year 1 Expected Narrative Annual Program Prior Year Total: Funds Amount Description Allocation: Income: $ Resources: $ Available $ $ Remainder of ConPlan CDBG public - Acquisition federal Admin and Planning Economic Development Housing Public Improvements Public Services 864,848 63,070 307,779 1,235,697 0 HOME public - Acquisition federal Homebuyer assistance Homeowner rehab Multifamily rental new construction Multifamily rental rehab New construction for ownership TBRA 372,030 94,300 1,608,518 2,074,848 0 Table 5 - Expected Resources — Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 17 22 If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Currently there is no publically owned land or property under consideration for use that isn't already addressed in other parts of the plan. Discussion Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 18 Annual Goals and Objectives AP -20 Annual Goals and Objectives Goals Summary Information Sort Goal Name Start End Category Geographic Needs Funding Goal Outcome Indicator Order Year Year Area Addressed 1 Single Familiy 2015 2019 Affordable Housing CITY OF Housing CDBG: Homeowner Housing Rehabilitated: Rehabilitation Program YAKIMA priority $509,855 90 Household Housing Unit needs 2 Community 2015 2019 CITY OF Housing CDBG: Other: 1 Other Development Block YAKIMA priority $193,066 Grant Administration needs 3 Public Services 2015 2019 Non -Housing CITY OF Housing CDBG: Public service activities other than Community YAKIMA priority $145,907 Low/Moderate Income Housing Development needs Benefit: 7100 Persons Assisted Public service activities for Low/Moderate Income Housing Benefit: 4 Households Assisted Other: 7500 Other 4 Economic Development 2015 2019 Non -Housing CITY OF CDBG: Jobs created/retained: 7 Jobs Community YAKIMA $25,000 Development 5 Administrative HOME 2015 2019 Affordable Housing CITY OF Housing HOME: Other: 1 Other costs YAKIMA priority $50,277 needs Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 19 Sort Goal Name Start End Category Geographic Needs Funding Goal Outcome Indicator Order Year Year Area Addressed year.) 6 First Time 2015 2019 Affordable Housing CITY OF Housing HOME: Direct Financial Assistance to Homeownership YAKIMA priority $100,000 Homebuyers: 2 Households Program needs Assisted 7 Community Housing 2015 2019 Affordable Housing CITY OF Housing HOME: Homeowner Housing Added: 4 Development YAKIMA priority $78,314 Household Housing Unit Organization needs 8 New Construction 2015 2019 Affordable Housing CITY OF Housing HOME: Homeowner Housing Added: 4 YAKIMA priority $275,830 Household Housing Unit needs Table 6 — Goals Summary Goal Descriptions 1 Goal Name Single Familiy Rehabilitation Program Goal The Single Family Rehabilitation Program includes; Description . The Senior/Disabled Homeowner Emergency Repair Program • The Senior/Disabled Homeowner Wheel Chair Ramp Program The Senior/Disabled Exterior Paint Program (This program is subject to availability to qualified projects and funding year to year.) 2 Goal Name Community Development Block Grant Administration Goal This program deals with the costs associated with the Administration of the Community Development Block Grant (CDBG) Description funds including personnel, equipment, and associated costs as per HUD regulations involving program administration. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 20 3 Goal Name Public Services Goal Public Service Programs assists with; Description . "Public Service Programs" administered through OIC of Washington in operating programs through the South East Community Center. • Graffiti Abatement • Senior/Disabled Energy Assistance • Landlord/Tenant Counseling 4 Goal Name Economic Development Goal The Economic Development budget line is to assist with either "Job Creation and/or Job Retention" as per HUD Eligible Description Activities. 5 Goal Name Administrative HOME costs Goal HOME administrative costs are associated with the cost of administering the HOME Investment funds to include personnel, Description office equiptment, etc. The HOME program allows for a maximum amount of 10% of the yearly total HOME Investment entitlement to be used for HOME administration. 6 Goal Name First Time Homeownership Program Goal The First -Time Homeownership program assists qualified low to moderate income first time homeowners with assistance in Description the form of a soft -second mortgage in conjunction with their first mortage bank loan. Monthly payments may be set according to the payback affordability by the buyer and deferred until five years at which time their affordability will be reviewed until they are deemed to have the affordability to make payments on the soft second mortgage. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 21 7 Goal Name Community Housing Development Organization Goal As per HUD eligible requirements, a minimum of 15% of an "Entitlements" HOME Investment funds must be used in Description supporting a Community Housing Development Organization (CHDO). This program assists local qualified CHDO's with the development, construction and/or assistance to qualified housing projects within the City of Yakima in assisting in the construction of affordable housing units. 8 Goal Name New Construction Goal As an eligible HOME Investment program, this program goal is to add new construction units as either single family Description residential dwellings or may be used in partnership with a Community Housing Development Organization (CHDO) in the construction of affordable apartment units or transitional housing units. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 22 Projects AP -35 Projects — 91.220(d) Introduction Projects # Project Name Table 7 - Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 27 23 AP -38 Project Summary Project Summary Information Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 24 N9 AP -50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed ONDS programs are designed to be application driven and City Wide, to enable the City of Ykaima to help as many low to moderate income applicants as possible within the entire city limits of Yakima. Geographic Distribution Target Area Percentage of Funds CITY OF YAKIMA 100 Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically Low to Moderate income citizen's are located city wide and it is not the wish or design by the City of Yakima to directly or indirectly "steer" people of any race, creed, color or financial level, be it low to moderate or otherwise into any designated area, real or otherwise. Therefore, the programs are offered city wide, to qualified appicants. Discussion The City of Yakima does not limit any CDBG or HOME Investment funding to any specific geographical area and all programs are designed to assist eligible applicants and funding within the entire city limits of Yakima as appropriate. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 25 iE Affordable Housing AP -55 Affordable Housing — 91.220(g) Introduction The main focus of the City of Yakima through ONDS in using both CDBG and HOME Investment funds is "Affordable housing". The Single Family Rehabilitation program is focused on rehabilitation of existing housing to enable the homeowners to continue to reside in their affordable housing, through the Senior/Disabled Emergency Home Repair Program to include; the Senior/Disabled Wheel Chair ramp program, the Exterior Paint Program, the Senior/Disabled Energy assistace program. ONDS also supports and encourages Affordable housing through the use of HOME funds for; the First Time Homebuyers Program, the New Construction Program and the use of a minimum of 15% of yearly entitlement HOME funds in supporting Affordable housing though certified CHDO/s One Year Goals for the Number of Households to be Supported Homeless 0 Non -Homeless 90 Special -Needs 25 Total 115 Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 4 Rehab of Existing Units 90 Acquisition of Existing Units 0 Total 94 Table 10 - One Year Goals for Affordable Housing by Support Type Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 0 Discussion Due to the reduced Federal Entitlement funds from HUD, the City of Yakima has cut a number of programs and continues to serve a very limited number of a growing number of Senior/Disabled homeowners with severe Emergency repairs such as; no heat, no power, no water, no sewer, deteriorated roofs that have become insurance concerns that may lead to cancellation. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) a 27 32 AP -60 Public Housing — 91.220(h) Introduction The City of Yakima continues to support the Yakima Housing Authority although indirectly. In the past the City of Yakima has supported specific facilities through various ways and even though budget restrictions severely limits the Cities participation in current projects, each request of the Housing Authority is reviewed individually and participation is given consideration through the Yakima City Council as are other funding requests. The Office of Neighborhood Development as the local environmental representative for HUD projects has worked with the Yakima Housing Authority to enable projects to have the proper documentation to meet the HUD regulation criteria needed for those specific projects as requested by the Housing Authority. Actions planned during the next year to address the needs to public housing The City of Yakima Office of Neighborhood Development Services expects to continue to partner and support the Yakima Housing Authority as our federal limited budget will allow. Specific projects and funding requests will be analized and give consideration by due process taking all consideration of the most beneficial use of entitlement funds. ONDS also expects to continue to support the Yakima Housing Authority with environmental review and documentation as requested by the Yakima Housing Authority. Actions to encourage public housing residents to become more involved in management and participate in homeownership The Yakima Housing Authority encourages resident involvement with programs like our Resident Advisory Board (RAB). The (RAB) provides the YHA and the residents with a forum for sharing information about the Agency's Annual Plan. RAB membership is comprised of individuals who reflect and represent the residents assisted by the PHA. The role of the RAB is to assist the PHA in developing the PHA Plan and in making any significant amendment or modification to the Plan. In addition, Yakima Housing Authority is an active participant in crime free rental housing which allows our residents to be a part of the local block watch and we participate every year, inviting our residents and local organizations, in the National Night Out. The YHA also participates in the Yakima County Asset Building coalition and they are establishing a Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 28 33 partnership with YV-CAN for the Union Gap and Yakima area. YHA is also in the process of collaborating with the AmeriCorps VISTA Educational Project with the goal of every eligible resident signing up for the college bound scholarship. Lastly, YHA is administering the Family Self -Sufficiency (FSS) Program. This program enables families assisted through the HCV program to increase their earned income and reduce their dependency on welfare assistance and rental subsidies. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance The Yakima Housing Authority is not designated as "Troubled". Discussion The Yakima Housing Authority continues to do an extrodinary job in assisting Yakima residents with decent, safe, affordable housing through it's many diverse housing programs. The City of Yakima looks forward to continuing our partnership with the YHA to provide this type of housing to our citizens. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 29 34 AP -65 Homeless and Other Special Needs Activities — 91.220(i) Introduction Yakima Valley Council of Governments (YVCOG) is the coordinator of the Yakima County 10 -Year Homeless Housing Plan. Yakima Valley Council of Governments (YVCOG) is composed of a broad group of Yakima County public, non-profit, and private human service agencies. Yakima Valley Council of Governments (YVCOG) conducts regular meetings and agendas, updated the Yakima County Continuum of Care Plan, and organized annual Point -In -Time Homeless Persons Count. The City of Yakima recognized homelessness as the most severe housing problem and therefore does it's best in trying to keep the most at risk population to become homeless, in their existing homes using both the CDBG funds for the Single Family Rehabilitation programs. These programs are designed to help the high risk Elderly and Disabled with Emergency Rehabilitation, Wheel chair ramps, and Exterior Paint programs in hopes that this will continue to allow them to occupy their current affordable housing situations. ONDS also strives to support afforadable housing with its Home Ownership programs; The First Time Homeowner Program, the New Construction Program and the direct and indirect support of certified Community Housing Development Organization in creating new single family housing that is decent, safe and affordable. Thus either directly affecting the homeless by giving them the opportunity to own their first home, or by indirectly allowing someone in either a rental situation or a public housing situation to buy their first home and thereby indirectly opening up another affordable rental or public housing unit for use by an otherwise homeless individual or family. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City of Yakima continues to support the Yakima County Continuum of Care Plan as a city policy. The first priority of the Continuum of Care is to maintain existing resources that serve the needs of the homeless withing the community. The plan identifies new projects and services that fill critical gaps in prevention services, outreach, emergency and transitional housing, support services and long-term affordable housing. Addressing the emergency shelter and transitional housing needs of homeless persons Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 30 35 The City of Yakima continues to work with Yakima Valley Council of Governments (YVCOG) through the Continuum of Care in addressing emergency shelters and transitional housing opportunities on individual project basis. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again Due to the severly limited Federal funds received by the City of Yakima through reduced entitlements, the city is unable to address this particular need until additional funding becomes available. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The City of Yakima through it's Senior/Disabled Emergency Home Repair program is often contacted by local hospital and nursing care facilities about Seniors and/or Disabled homeowners that need emergecy repairs or wheel chair ramps to be allowed to return to their homes after being released from these care facilities. Discussion Due to severely limited resources the City of Yakima continues to direct it's attention to assisting Senior/Disabled Homeowners through it's Emergency Home Repair programs to enable these frail elderly and disabled to remain in their homes and thereby not becoming homeless and adding to the Continuum of Care's burden with additional homelessness. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 31 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 99 32 37 AP -75 Barriers to affordable housing — 91.220(j) Introduction: The biggest barrier faced by the local entitlement jurisdiction is the past to present federal reduction of funds allocated by HUD to the City of Yakima for Affordable Housing. Not to mention the ever increasing amount of administration burden that far out weights the amount of funds that is actually used to assist those in need. Not to be misconstrued as the "Administration" cost that is held captive by the HUD designated maximum cap, but the reporting and recording burdens that are put in place that significantly increase the cost of every single project. To include the Monitoring, Reporting of projects as Eligible Activities, Outcomes and Performance Measures, Contractor Monitoring, Davis Bacon reporting, Section 3 reporting, Minority Monitoring Reports, as well as Individual Program reporting such as America Recovery and Reinvestment Act (ARRA) and Neighborhood Stabilization Program (NSP). Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment The City of Yakima continues to work with expanding economic development activities to bolster the local economy and spur building investment towards the construction of more affordable residential investments. Discussion: The effective use of Federal allocations to the responsible local entities with a measured reserve of responsible recording and reporting is the only way of effectively reducing the barrier to affordable housing at the local level. Increasing the benefit to the low and moderate income workforce that has so effectively made our great county what it is, is the only way of increasing affordable housing and will not only effectively raise the entire Nations living standard, but also serve it well economically. Continuing to assist foreign countries with federal funds while reducing the federal allocations to entitlements has brought affordable housing to where it is presently, not to mention our countries ever decreasing popularity amongst other countries. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 33 38 AP -85 Other Actions — 91.220(k) Introduction: The City of Yakima continues to assist it's citizens with the use of Community Development Block Grant (CDBG) and HOME Investlent funds to the best of it's ability through the Office of Neighborhood Development Services by continuing to assist qualified low to moderate applicants with rehabilitation of their existing homes, providing new single family dwellings to qualified First Time Homeowners, assist the community with Painting Over Graffiti, Economic Development, Neighborhood development as well as stabilization with the use of volunteers and volunteer agencies in cleaning up and keeping our neighborhoods affordable and stable. Actions planned to address obstacles to meeting underserved needs The City of Yakima will continue to seek Federal funding as well as other available funding to overcome the lack of sufficient funds to address all the underserved needs. The City of Yakima Office of Neighborhood development services continues to partner with many non- profits, local service organizations, other government and non-government agencies to assist in meeting underserved needs. Actions planned to foster and maintain affordable housing As discussed throughout the Consolidated Plan and elsewhere in this Annual Action Plan, the City of Yakima has a wide variety of programs directed at maintaining affordable existing housing through Rehabilitation, as well as new single family dwellings through it's homeownership programs. The City of Yakima continues to partner with local affordable housing agencies. Actions planned to reduce lead-based paint hazards As discussed in the Five Year Consolidated Plan, the City of Yakima Office of Neighborhood Development Services aligns all it's Rehabilitation programs with the Washginton State Lead Based Paint regulations and continues to "Presume" any disturbed paint surfaces are "possible lead hazzards" and thus are treated according to the states regulations and HUD's lead based paint policy. ONDS has both certifies supervisors and staff on hand to assess and address lead based paint as well as Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 34 99 hires certified state lead based paint professionals in dealing with all projects with potential lead based paint disturbed surfaces. Actions planned to reduce the number of poverty -level families The City of Yakima continues to address Economic Development opportunities to bring more businesses and jobs to Yakima that pay decent living wages, as well as encourage growth and development of existing opportunites to assist poverty level familes. See the Economic Development portion of the plan for more information. Actions planned to develop institutional structure The City of Yakima continues to work with existing agencies and departments within Yakima as well as consultants and other government bodies outside Yakima to strengthen and enhance the current institutional structure. We will continue to seek out partnerships with organizations as well as private enterprise to further develop the institutional structure. Actions planned to enhance coordination between public and private housing and social service agencies The City of Yakima through the Office of Neighborhood Development Services will continue to coordinate with Public and private housing and social service agencies through committee meetings and consultation to coordinate services to the Yakima citizens. Discussion: The City of Yakima Office of Neighborhood Development Services has served it's community for approximately 40 years through its vast a varied programs administering all kinds of federal and state funds over the years towards the betterment of our community and the focus on affordable housing. Partnerships with other organizations have been instrumental in continuing affordable housing within Yakima with every agency struggling with funding from the past several years of economic struggle. The City of Yakima has been focused on being a good steward of both CDBG and HOME Investment funds and stretching those dwindling resources to the best of our ability in serving our community. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 35 The city of Yakima continues to strive for affordable housing with the assistance of the community, neighborhoods and partners in effectively using our entitlement funds. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 40 41 Program Specific Requirements AP -90 Program Specific Requirements — 91.220(1)(1,2,4) Introduction: Due to the limited HUD funding, the City of Yakima expends every dollar as effectively and efficiently as possible to benefit it's citizens within its ONDS programs as per HUD's requirements. This means that any program income, float -funded activities or section 108 loan guarentee funds are infused within appropriate programs and the funding utilized as per HUD regulations concerning Eligible Activities to meet HUD approved National Objectives. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 63,000 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5. The amount of income from float -funded activities 0 Total Program Income: 63,000 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% Annual Action Plan 37 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 42 Reference 24 CFR 91.220(1)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: Both "Non -Federal" and HOPE 3 funding sources are other forms of investment being used as needed beyond those identified in Section 92.205. The City of Yakima also uses Volunteer hours as accumulated Federal Match on HOME Investment projects. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: 1. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 38 43 When the City of Yakima makes a loan of HOME funds, that loan is secured by a promissory note and deed of trust. Within those documents is language that specifies the disposition of funds in the event of a sale. The City of Yakima uses the "Full Recapture" provision in the following manner; If the Homebuyer decides to sell, rent or dispose of the property at any time before the expiration of the affordability period "Full Recapture" provision goes into effect, and in the even of sale, foreclosure, will trigger repayment of the entire HOME direct subsidy loan amount (Recapture). The Recapture amount is based on net proceeds from the voluntary sale or foreclosure. The net proceeds of a sale are the sales price minus non -Home loan repayments and any closing costs. As per regulation 92.545 (ii)(A) says in establishing the PJ's recapture requirements, the PJ is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, the amount recaptured cannot exceed the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than the direct subsidy HOME runds) and any closing costs. Furthermore, if there are no net proceeds- the amount to be recaptured would be zero given that the City of Yakima may not recapture more than the amount of net proceeds. If the net proceeds are some portion but do not fully equal your HOME direct subsidy investment amount that would be the amount to recapture. To clarify, the recapture amount is based on the direct HOME subsidy as per HUD requirements. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: 1. with HOME funds? See 24 CFR 92.254(a)(4) are as follows: When the City of Yakima makes a loan of HOME funds, that loan is secured by a promissory note and deed of trust. Within those documents is language that specifies the disposition of funds in the event of a sale. The City of Yakima uses the "Full Recapture" provision in the following manner; If the Homebuyer decides to sell, rent or dispose of the property at any time before the expiration of the affordability period "Full Recapture" provision goes into effect, and in the even of sale, foreclosure, will trigger repayment of the entire HOME direct subsidy loan amount (Recapture). The Recapture amount is based on net proceeds from the voluntary sale or foreclosure. The net Annual Action Plan 39 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 44 proceeds of a sale are the sales price minus non -Home loan repayments and any closing costs. As per regulation 92.545 (ii)(A) says in establishing the PJ's recapture requirements, the PJ is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, the amount recaptured cannot exceed the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than the direct subsidy HOME runds) and any closing costs. Furthermore, if there are no net proceeds- the amount to be recaptured would be zero given that the City of Yakima may not recapture more than the amount of net proceeds. If the net proceeds are some portion but do not fully equal your HOME direct subsidy investment amount that would be the amount to recapture. To clarigy, the recapture amount is based on the direct HOME subsidy as per HUD requirements. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: 1. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City of Yakima currently has no plans for refinancing any existing debt secured by multifamily housing that is rehabilitated with HOME funds. If such actions are decided by the Yakima City Council, an amendment of the Consolidated Plan will be sought and the required refinancing guidelines will be defined at that time as part of the Amendment. Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 40 45 The City of Yakima chooses to use the Overall Benefit in the following manner- As a consecutive period of "One Year, used to determine that a minimum overall benefit of 100% of CDBG funds is used to benefit persons of low and moderate income. The year specified is this Annual Action Plan of 2018 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 41 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 46 ►WN 47 City of Yakima Office of Neighborhood Development Services CDBG EXPENDITURES HUD Programs (CDBG) 2018 Total Estimated Expenses 2017 Total 2016 Total CDBG Single Family Rehabilitation 570.202 (b) Senior f Disabled Rehabilitation 582,426 556,671 509,855 II Community 1 Public Services 570.201 (e) Graffiti Abatement (approved by HUD 2007) 40,822 33,322 38,557 Fair Housing Counseling 507.201 (k) 25,450 25,450 27,450 Senior -Disabled Energy Assistance 4,900 3,455 4,900 ❑IC of WA -CBD❑ 60,000 67,500 75,000 Total 131,172 129,727 145,907 III Public Facilities 570.201 (C) Southeast Community Cntr 1 Miller Park Activity Cntr (or other public facilities in the neighborhood) - 5,000 5,000 IV Code Compliance 570.202 ( C ) (Program Delivery) - - 61,500 V Economic Development 570.203 (b) UNKNOWN CONTRACT 25,000 50,000 50,000 VI Administrative CDBG Costs 570.206 (slb) 184,650 185,350 193,066 (Frog) Grand Totals 1 923,248 §M 926,748 IM 965,328 0 48 City of Yakima Office of Neighborhood Development Services HOME REVENUE & EXPENDITURES 2018 201T2016 Estimate 124 8953103 372,030 372,030 410,678 HUD HOME Program 124 8953104 HOME Program -Prior Year 124 8956114 HOME Program Interest Income 13,000 13,000 15,500 124 8956808 HOME Program Income 71,272 71,272 78,800 HOME Revenue Totals: 466,302.00 456,302.00 504,978.00 HOME EXPENDITURES 2018 Total 2017 Total 2016 Total All activity is eligible under 92.205 (a) (1) Estimated HOME PROJECT CATEGORIES: Expenses First -Time Homeowner Assistance (up to $50,000 each) 10,000 10,000 100,000 Single -Family Home Rehabilitation 0 0 0 Community Housing Development Organization 317,805 317,805 76,665 (CHDO: HUD requirement, minimum of 15% of Entitlement) New Construction 82,867 82,867 277,815 HOME Administrative Costs 45,630 45,630 50,498 TOTALS 456,3021 456,3021 504,978 456,302 456,302 604,978 Year City of Yakima Office of Neighborhood Development Services Annual Entitlements 2000 through 2017 increaselDecrease CDBG Entitlement from Prior Year HOME 49 Increase/Decrease from Prior Year 2000 1,009,000 545,000 2001 1,199, 000 18.8% 688,000 26.2% 2002 1,168,000 -2.6% 684,000 -0.6% 2003 1,416,000 21.2% 690,285 0.9% 2004 1,389,000 -1.9% 691,919 0.2% 2005 1,350,348 -2.8% 672,757 -2.8% 2006 1,214,103 -%1% 633,910 -5.8% 2007 $ 1,210,374 43% $ 632,684 -0.2% $ (3,729) $ (1,226) 2008 $ 1,169,056 -3.4% $ 611,264 -3.4% $ (41,318) $ (21,420) 2009 $ 1,185, 386 1 A% $ 682,410 11.6% $ 16,330 $ 71,146 2010 $ 1,283,426 8.3% $ 677,752 -0.7% $ 98,040 $ (4,658) 2011 $ 1,073,172 -16.4% $ 597,053 -11.9% $ (210,254) $ (80,699) 2012 $ 887,581 -17.3% $ 393,587 -34.1% $ (185,591) $ (203,466) 2013 $ 912,849 2.8% $ 401,164 1.9% $ 25,268 $ 7,577 2014 $ 841,886 -7.8% $ 406,607 1.4% $ (70,963) $ 5,443 2015 $ 856,440 1.7% $ 384,275 -5.5% $ 14,554 $ (22,332) 2016 $ 902,258 5.3% $ 410,678 6.9% $ 45,818 $ 26,403 2017 $ 864,848 -4.1% $ 372,030 -9.4% $ (37,410) $ (38,648) 2017 Projected $ 902,258 -4.1% $ 410,678 0.0°I° 2017 Actual $ 864,848 $ (37,410) $ 372,030 $ (38,648) 6/15/2017 AS W ANIW.%I10 (iI;►rd pro" t'�i);'.t �t�f�s!e i�l_1r1�,1�1u.r1 t,yhrr 1t. 11fath'-wk.114jimccr flj'jut' tol I INie e-llrlli lr� lr rziY�'ti W, 1+,urh Eachth siret's ir►fimil. 11jo%heroxilt,r INN i7i•nlrr! , f(II 1 idiloI i7i.pJ •n Angus[ 17, 2017 Maria DJ Rodriguez Rural Community Development Resources 24 South 3nd Avenue Yakima, WA 98901 Regarding: Future City of Yakima Economic Development funding Dear Mrs. Rodriguez, As you know, the City of Yakima receives Community Development Block Grant (CDBG) funds from the Federal Housing and Urban Development agency. These funds have been steadily reduced over the past several years and it has come to our attention that there is discussion of discontinuing CDBG funds altogether in 2018 by the current Federal Administration. Obviously we are hoping this isn't the case, but we have to be realistic about future funding and the City's budget. The money that is granted to RCDR from this office comes from the City's CDBG allotment. Since the CDBG funding is unknown, the City must take precautionary measures regarding future funding decisions. Thus we will be budgeting $25,000 for Economic Development out of the CDBG funds, which is the eligible activity and funding source for your microenterprise assistance project. This amount would, of course, only be available if the City of Yakima receives a moderate reduction and the Council continued to approve the expenditure, and would be totally eliminated if the CDBG program was discontinued. Please also be aware that although in the past you have turned in your funding requests in October of the preceding year, we did not receive funding amounts in 2016 and 2017 until the month of June the following year. This year we could not take a funding request to the Yakima City Council until we knew what our funding amount was, and, therefore, are even nuw at this late date preparing to take your 2017 funding request forward to council in September. You may want to keep this in mind when submitting your 2018 funding proposal. If you have any questions or concerns regarding this contract, please contact me. Thank ou, t Archie M Matthews ONDS Manager Cc: file Ya*,r„m 51 6►li'!N''tfl,\i 1r! (11.11111 111i� 1��111�fl��.Ir111r'�ar.41/r�1+111:1 � Irth4 }l. t►Fill lt. w ti, IhippnR. r I 1 jA-4 of % 1 le r'lu�.Hf.w! .fie W'ri't+ 112.Noush Piglfrk wrrr'r1 t,u4fnfrl.14itviol rigto r Y-NWPj 000)) :.}-11111 • 1 at r.311'V: c"5 -1,1"n S, 201 i Mr_ Steve Mitchell CEO Opportunities Industrialization Center 815 Fruitvale Boulevard Yakima, WA 98902 Regarding; Future City of Yakima Economic Development funding Dear Mr. Mitchell, As you know, the City of Yakima receives Community Development Block Grant (CDBG) funds from the Federal Housing and Urban Development agency. These funds have been steadily reduced over the past several years and it has come to our attention that there is discussion of discontinuing CDBG funds altogether in 2018 by the current Federal Administration. Obviously we are hoping this isn't the case, but we have to be realistic about future funding and the City's budget. The money that is granted to OIC from this office comes from the City's CDBG allotment Since the CDBG funding is unknown, the City must take precautionary measures regarding future funding decisions. The City is getting ready to start evaluating the 2018 budget. It is unknown the amount that might be available for budgeting towards your program next year, and we wanted to make you aware of the possibility that the funding amount available could be reduced. CDBG money, of course, would only be available if the City of Yakima receives a moderate reduction and the Council continued to approve the expenditure, and would be totally eliminated if the CDBG program was discontinued. Thank you for providing services to the residents of Yakima and your continued commitment to the City. If you have any questions or concerns regarding this contract, please contact me. Thank you, Archie NI Matthews ONDS Manager ; WIN 52 October 5, 2017 To: Joan Davenport City of Yakima From: Maria DJ Rodriguez, Executive Director Rural Community Development Resources Re: 2018 CDBG Funding Request - Microenterprise Technical Assistance $50,000 Rural Community Development Resources Center for Business Development (The Center) is requesting a $50,000 grant from the City of Yakima's 2018 allocation economic development within the city of Yakima. These funds will be utilized to provide technical assistance for hard to serve low/moderate income individuals that seek technical or financial assistance to start or expand a microenterprise as a form of job creation or retention within the City of Yakima. Furthermore, these funds can be used to serve as match dollars for additional funding into RCDR to continue providing business technical assistance and financing to start up low income entrepreneurs. The Center has an outstanding 26 -year track record in assisting microenterprises with relevant and culturally sensitive business counseling & coaching, business plan development, educational workshops and access to financing. In addition, the Center has been administering a revolving loan fund for over 20 -years funds with a less than 3% default rate and 64% business retention making the Center one of the few successful alternative lenders within Washington State. The Center is also a certified Community Development Financial Institution (CDFI) by the Department of the Treasury and is a certified SBA Intermediary Lender. These designations are hard to obtain and maintaining that certification is based on outcome based performance and adequate and timely reporting requirements. The City of Yakima's continued supportto assist microenterprises to create jobs and assets for low income individuals has played a role in the success of this program. With the CDBG dollars awarded, low income individuals can set up microenterprises, employ low income individuals, create assets and increase wealth. Over the last three years, the impact made in year on is 17 jobs with an output of 1.63 million and has grown to 55 jobs with an output of 5.73 million. Additional highlights include the support of 35 households within the City generating $97,906 in local tax and $120,916 in state taxes due to household spending of $1.59 million. These impacts are important to continue the growth of the local economy with quality jobs, revenues that turn in tax revenues and an overall quality of life. 2018 City of Yakima CDBG Grant Funds Request Page 1 of 3 Direct Loan Borrower Jobs Business Year Loans* Investment Investment Created/ Revenue % LMI Retained 2015 7 $405,993 $195,000 14 $1,904,810 56% 2016 6 $467,410 $228,500 25 $2,071,843 43% 2017+ 3 $393,874 $70,000 24 $1,651,357 25% Total 22 67,277 $493,500 41 $5,628,010 41% Average 2018 City of Yakima CDBG Grant Funds Request Page 1 of 3 53 For the last three years, new customers had requested bigger loans of which employed more job within the City of Yakima. The investments were 90% service business of which 95% microenterprises still in business. In 2016, 63% were jobs created in the City of Yakima. 2015 2016 2017 Job Created P"'"` 21% Job Retained 'log Job 37% Job Created Job Retained Job Crea Retained 79% 63% 53/ 0 47% The Center has invested $1,872,232 of loan funds of which 67% were in the City of Yakima, 67 jobs created with the average loan being $57,603 of which 61% were created in the City of Yakima; 95% of jobs created were Latino communities. City of Yakima Investment r 2017� 2015 31% 32% L '9 2016 7% Leverage 2017 2015 36% 34% The main need is access to capital to start a microenterprise & be able to sustain their families during the off season. When RCDR started, its primary focus was to provide financial services such as educational workshops to educate the customer on the rules & regulations of starting a business, business plan development & served as a broker for loan packages to banks. This year data as of 9/30/17 shows that of all the inquiries received are 88% Latinos, 47% are from the City of Yakima and 59% of those are low income individuals residing within the city limits. 2018 City of Yakima CDBG Grant Funds Request Page 2 of 3 Inquiries 10 4% 8% 47 31% N City of Yak ■ Lower Valley v Upper Valley ■Tri -city HUD Income Verification 59% � Low -Moderate Inc (LMI) 54 It takes many hours of technical assistance for each entrepreneur which is inconsistent to the type of financing they are applying for. The numerous hours spent is needed for long term success of the entrepreneur with emphasis in business financial management and business tax reporting which creates assets and long term sustainability and growth. Strong partnerships with local banks whose representatives serve on the Loan Credit Committee (LCC) to review and make recommendations on loan packages presented is key to RCDR's success. These partnerships within the banking community have enhanced the ability to access fund capitalization from private banks, state and federal funds. The 2018 TA request will serve microenterprises that hire low income employees, which is consistent with HUD CDBG regulations regarding the provision of microenterprise technical assistance. The services will include individual business assistance and coaching, educational workshops, business plan development, and loan packaging. Loan funds will be made from other sources such as federal, state and or private banks will be made available for those microenterprises that qualify and reside within the City of Yakima. The objectives for 2018 are as follows: • 24 startups and expanding microenterprises will receive TA • 10 loan packages and business plans will be developed • 2 business tax seminars for 15 attendees • 2 personal financial literacy seminars for 18 attendees • 8 loans will be closed and funded Local support is greatly needed to continue providing the needed TA for microenterprises to be successful, grow and create jobs for the local economy. 2018 City of Yakima CDBG Grant Funds Request Page 3 of 3 55 Elva Ruiz dba B�:& E Auto Detailing 901 - go MOM Mly,1=611, UGIN •sure to pro7TI-e a personai re-Lerence to continue receiving funding from the City of Yakima. In my capacity as business owner of B & E Auto Detailing in the city of Yakima, I have worked with the Center closely in January 2015 to purchase commercial real estate to expand my enterprise and build assets and provide job opportunities. We also requested a 2 d loan in October 2016 to replace the roof on our business. With the workshops and technical assistance of RCDR, I've since then increased my knowled.e to better manage my business especially in bookkeeping, boosted revenue and opened doors that might have not been available so promptly. My business was able to achieve tremendous financial growth and helped me accomplish personal goals with their support. B & E Auto detailing was able to provide employment to 2 full time employees and, who are low income residents in the city of Yakima. My business also was able to provide employment for my husband who now runs the business. No to mention that I was able to quit my job which allowed me to focus more on my family and business. RCDR's knowledge and dedication to encourage community development through self- employment opportunities for low income entrepreneurs, has and will continue to allow business like me to advance in the community, granting endless possibility for the future. I would have never imagined that we would be where we are now without their help along the way. Should you like to discuss my experience with RCDR or have further questions regarding this letter, please do not hesitate to call me at the number listed above, I'd be happy to expand on my support for the Center and its programs for low income entrepreneurs like me. Sincerely, Elva Ruiz Owner -M Esmeralda Morfin 512 N 22nd Ave Yakima, WA 98902 (509) 823-8360 qrl:j Es un placer para mi dar una referencia personal para RCDR, el Centro para el Desaffollo de Negocios, para continuar recibiendo fondos de la Ciudad de Yakima. Como propietario de negocio de Peluqueria Esme en la ciudad de Yakima, he trabaj ado con el Centro reciente en enero 2016 para obtener un pr6stamo para hacer arreglos a mi negocio. los ingresos y he abierto puertas que quiz6s no estaban disponibles tan pronto. He podido me lograr objetivos personales con su apoyo. La dedicaci6n de RCDR para crear el desarrollo de la comunidad a trav6s de oportunidades de autoempleo para emprendedores de bajos ingresos, ba permitido y continuard permitiendo que personas como yo avancen en la comunidad, dando varias posibilidades para el futuro. Si desea hablar sobre mi experiencia con RCDR o si tiene mds preguntas con respecto a esta carta, no dude en Ilamarme al nAmero que estd arriba, seria un placer ampliar mi apoyo al Centr* y sus prograrnas para emprendedores de bajos ingresos como yo. Sinceraniente, J(Y e-"� FORMT&MINIKIM Antonio Mendez dba A Trucking 5306 Mieras RD Yakima, WA 98901 (509) 307-5800 H�r� 57 It's my pleasure to provide a personal reference for RCDR the Center for Business Developmeni to continue receiving funding from the City of Yakima. As a business owner of A Trucking in the city of Yakima, I have worked with the Center closely in 2015 to obtain a loan to purchase equipment to increase my business. I have participated in the RCDR's workshops that have allowed me increased my knowledge to better manage my business & maintain a booking system. With the financial assistance I've boosted revenue and opened doors that might have not been available so promptly. My business was able to achieve tremendous financial growth and helped me accomplish personal goals with their support. RCDR's knowledge and dedication to encourage community development through self- employment opportunities for low income entrepreneurs, has and will continue to allow business like me to advance in the community, granting endless possibility for the future. MWOMMMINI WHO 0 no J!j sit] am Low I rww-j n U-101 I I Lf 58 Rito lbarra dba R & R Express 1315 Swan Ave Yakima, WA 98902 (509) 728-0756 Es un verdadero placer para mi dar una referencia personal para RCDR, el Centro para el Desarrollo de Negocios, para continuar recibiendo fondos de la Ciudad de Yakima. Como propietario de negocio de R & R Express en la ciudad de Yakima, he trabajado con el Centro reciente en enero 2017 para obtener un pr6stamo para comprar un Nuevo reefer. Aun que podia ver trabajado con un banco decidi trabajar con RCDR por la ayuda que me dieron en aflos atrds cuando comenc6 mi negocio. Con los talleres y la asistencia t6cnica ofrecidos por RCDR, he aumentado mi conocimiento en administrar mejor mi negocio especial mente en tener un sistema de contabilidad, he aumentado los ingresos y he abierto puertas que quizds no estaban disponibles tan pronto. Mi negocio fue capaz de lograr un tremendo crecimiento financiero y me ayud6 a lograr objetivos personales con mum= - ------------ - Si desea hablar sobre mi experiencia con RCDR o si tiene mds preguntas con respecto a esta carta, no dude en Ilamarme al n�imero que estd arriba, seria un placer ampliar mi apoyo al Centro y sus programas para emprendedores de bajos ingresos como yo. -M Arturo & Maria G. Silva dba BLT Transport 10202 Ahtanurn Rd Yakima, WA 98903 (509) 426-0733 Es un verdadero placer para mf dar una referencia personal para RCDR, el Centro para el Desarrollo de Negocios, para • recibiendo fondos de la Ciudad de Yakima. Como propietario de negocio de BLT Transport en la ciudad de Yakima, he trabqjado con el Centro reciente en noviembre 2016 para obtener un pr6stamo para reparar mi cami6n. Nosotros hemos trabai ado con el Centro en el 2003. 2009 v 2011 Dara comDarar eauino v crecer nuestro =gocio. Los talleres y la asistencia t6cnica ofrecida por RCDR, he aumentado mi conocimiento en administrar mejor mi negocio especial mente en tener un sistema de contabilidad, he aumentado los ingresos y he abierto puertas que quizds no • • tan •r Mi negocio fue capaz de lograr un tremendo crecimiento financiero y me ayud6 a lograr objetivos personales con 39WWO La dedicaci6n de RCDR para crear el desarrollo de la comunidad a trav6s de oportunidades de autoernDleo i)ara emDrendedores de ba' I ue ,jos in�resos, ha jermitido continuard erm fienc o Si desea hablar sobre mi experiencia con RCDR o si tiene mds preguntas con respecto a esta ... a a Of I Ef NO M 9,74 -MI I! WA I OWN I I J'�j 01-19-N-JUIM I I Arturo Y Maria G Silva ProIID ietario